Confused by the PSC Register?
What is a PSC?
Accountants are now using a new method to file their clients’ PSC information at Companies House, due to changes to the PSC legislation from June 2016. This information must be kept up-to-date to avoid being in breach of new Anti-Money Laundering (4AMLD) regulations.
Here we answer a few FAQs from accountants around what the PSC Register is, what these changes mean, and how software can reduce the administrative burden of providing real-time updates to the PSC. For the full list read our recent blog!
What is the PSC Register?
PSC stands for the Person(s) of Significant Control. PSCs are usually individuals holding more than 25% of shares or voting right in the company.
This covers UK companies, Societaes Europaea (SE’s), Limited Liability Partnerships (LLP’s), and Eligible Scottish Partnerships (ESP’s). From June 2016, these companies must identify the people who own or control their company, and notify Companies House of any changes to these identities.
The PSC Register is a collation of this information held by Companies House and provides the necessary transparency of the person(s) that control every company within the UK.
How has the PSC legislation changed?
Until now, details of individual PSCs and statements about the state of the PSC register had to be notified to Companies House using the annual confirmation statement. This has replaced Form CS01 for companies and Form LL CS01 for LLPs.
You should now notify Companies House of this information using forms PSC01 to PSC09, which are a breakdown of the details needed to be recorded. Updating these forms can be achieved quickly and efficiently using Company Secretarial software.
Why was there a change to the PSC?
The main reason for amendment to the legislation is to make it harder for terrorists and criminals to move money through the UK financial system. By supplying relevant information on a real time basis, Companies House can spot anomalies and identify risky individuals.
With a requirement for more quality information on firm ownership, it’s clear that the way in which accountants pass information to Companies House was due an update. By meeting the legislation, accountants can avoid substantial financial penalties, whilst also negating risk.
When do I need to update the PSC?
You need to report all changes to their PSC information as they take place – you will no longer be able to wait until the annual confirmation statement.
You have 14 days to update the PSC Register and another 14 days to notify Companies House of the changes.
Can software manage the PSC process?
Company Secretarial software helps you to ensure any changes to the PSC(s) are recorded adequately and efficiently. Software automatically produces all of the relevant forms and enables seamless electronic submission to Companies House.
Learn how to manage the PSC Register
View our on-demand webinar to understand the changes to the PSC legislation in more detail, and see first-hand how to simplify the process with our software solution for accountants.
More FAQs answered over on our PSC blog!